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Market Roundup 

* The Indian rupee is expected to open slightly lower following recovery in the greenback against major currencies. The higher crude oil prices, risk-averse sentiments and foreign fund outflows could weigh on the local rupee ahead of General Election results. 

* On Tuesday, spot USDINR gained 4 paise to 83.18. Technically, it has been holding the support at 83 and getting resisted at 83.30. The bias remains bearish as long as it trades below 83.30. 

* China’s yuan slid to the lowest since November amid signs policymakers are letting the currency drop against a resilient dollar. 

Forex:

* The dollar turned higher, tracking higher Treasury yields after weak auction results and an unexpectedly strong US consumer confidence reading. The 10-year US Treasury yield is up eight basis points at 4.54% with the rise also fueled by higher oil prices.

* US Consumer confidence unexpectedly rose in May for the first time in four months. Home price growth in 20 major cities accelerated to 7.4% on an annual basis in March.

* Minneapolis Fed President Neel Kashkari said the US central bank’s policy stance is restrictive, but policymakers haven’t entirely ruled out additional interest-rate increases. Swap contracts are currently pricing in around 30 basis points of Fed rate cuts for all of 2024 — which equates to one reduction.

* The European Central Bank is increasingly confident of bringing consumer-price growth back to 2% next year and can loosen its “historically tight” monetary policy step by step, Governing Council member Klaas Knot said. 

Equities:

* Asian stocks traded lower Wednesday as traders assessed the impact of the jump in US Treasury yields overnight and comments from a Federal Reserve speaker led to receding bets for Fed rate cuts

Commodities:

* Oil extended gains as another attack in the Red Sea added to heightened geopolitical tensions in the Middle East ahead of an OPEC+ meeting on the weekend.

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